Cryptocurrency Q&A How to use long-short ratio?

How to use long-short ratio?

Riccardo Riccardo Mon Dec 02 2024 | 5 answers 1636
I'm trying to understand how to effectively utilize the long-short ratio in my trading strategy. Could someone explain its application and how it can help in making informed decisions? How to use long-short ratio?

5 answers

Elena Elena Tue Dec 03 2024
Sarah calculates her long-short ratio by taking into account the number of shares she holds in long positions.

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Tommaso Tommaso Tue Dec 03 2024
This ratio indicates that for every share she has sold short, she holds two shares in long positions.

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Martino Martino Tue Dec 03 2024
She then compares these long positions with the shares she has in short positions.

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noah_wright_author noah_wright_author Tue Dec 03 2024
For example, if Sarah owns 1,000 shares in long positions, she would look at how many shares she has sold short.

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CryptoPioneer CryptoPioneer Tue Dec 03 2024
Let's say she has 500 shares in short positions. In this case, her long-short ratio would be 2:1.

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